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Chairman
Linda W. Cropp, at the request of the Mayor
A
BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
Chairman
Linda W. Cropp, at the request of the Mayor, introduced the following
bill, which was referred to the Committee on
To
amend Title 47 of the District of Columbia Official Code to create a
special non-lapsing account within the General Fund to be denominated as
the "Ballpark Revenue Fund"; and to amend the Tax Increment
Financing Authorization Act of 1998 to create a tax increment financing
district and allocate to the Ballpark Revenue Fund the incremental real
property tax revenues and sales tax revenues from such district, to impose
a fee on the gross receipts of certain persons doing business within the
District of Columbia, to impose a sales tax at the point of sale within
the District of Columbia on tickets of admission to certain events, and to
provide that the Ballpark Revenue Fund be used to pay, or to support debt
service on bonds or other evidence of indebtedness to be issued to pay,
certain costs of the development, construction, or renovation of a stadium
or arena after January 1, 2003, that has as its primary purpose the
hosting of professional athletic team events in the District of Columbia.
BE
IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may
be cited as the "Ballpark Revenue Amendment Act of 2003".
Sec. 2. The Council
of the District of Columbia finds that:
(1) The construction,
development, or renovation of a publicly financed stadium or arena, after
January 1, 2003, for professional athletic team events would be in the
interest of the citizens of the District because such a publicly financed
stadium or arena would contribute to the social and economic well being of
the citizens of the District and would significantly enhance the economic
development and employment opportunities within the District.
(2) In order to
further that interest, it is appropriate for the District to contribute a
portion of the cost of constructing, developing, or renovating such a
stadium or arena and to that end, to impose a fee based upon the gross
receipts of certain persons doing business within the District of
Columbia, to impose a tax on the sales of tickets to certain events at the
stadium or arena and to allocate to a special non-lapsing account within
the General Fund the incremental real property tax revenues and the
incremental sales tax revenues derived from a tax increment financing district comprising the area surrounding the
stadium or arena, and to utilize the revenues derived from such fees and
taxes to pay a portion of the cost of development, construction, or
renovation of the stadium or arena or the debt service on bonds or other
evidence of indebtedness issued to finance a portion of the cost of the
development, construction, or renovation of the stadium or arena.
Sec. 3. Creation of
Revenue Fund.
Title 47 of the
District of Columbia Official Code is hereby amended by adding the
following new section:
"§47- E 31.01
Ballpark Revenue Fund.
(a) Notwithstanding
Article 9 of Title 28 of the D.C. Official Code or any other provision,
pursuant to the authority granted by § 47-131(b), the Council hereby
establishes within the General Fund a special non-lapsing account to be
denominated as the "Ballpark Revenue Fund". The Chief
Financial Officer shall pay into the Ballpark Revenue Fund all receipts
from those fees and taxes specifically identified by any provision of
District of Columbia law to be
paid into such fund. The Chief Financial Officer shall create a
sub-account within the Ballpark Revenue Fund for each type of fee and tax
that is to be paid into such fund and shall allocate the receipts from
each type of fee and tax to the appropriate sub-account. The Mayor, or any
District government agency or instrumentality which has been designated by
the Mayor, may pledge and create a security interest in the monies in the
Ballpark Revenue Fund, or any sub-account or sub-accounts within such fund
for the payment of the costs of carrying out any of the purposes described
in subsection (c) of this section, or for the payment of the debt service
on any bonds or other evidence of indebtedness issued by the District, or
any District government agency or instrumentality, for any of the purposes
described in subsection (c) of this section, without further action by the
Council as permitted by section 490(f) of the District of Columbia Home
Rule Act of 1973, approved December 24, 1973 (87 Stat. 809; D.C. Official
Code 1-204.90(1)). If bonds or other evidence of indebtedness are issued,
such payment will be made in accordance with the provisions of the
documents entered into by the District or any District agency or
instrumentality in connection with the issuance of any such bonds or other
evidence of indebtedness. Notwithstanding Article 9 of Title 28 or any
other provision to the contrary, any security interest created pursuant to
this subsection shall be valid, binding and perfected from the time such
security interest is created, with or without the physical delivery of any
funds or any other property and with or without further action. Such
security interest shall be valid, binding and perfected whether or not any
statement, document, or instrument relating to such security interest is
recorded or filed. The lien created by such security interest is valid,
binding and perfected with respect to any person (as defined in §
47-2001(i)) having claims against the District, whether or not such person
has notice of such lien.
(b) For purposes of
this section, "ballpark" shall mean a stadium or arena that has
as its primary purpose the hosting of professional athletic team events
and is constructed or renovated after January 1, 2003 through the use of,
in whole or in part, public financing.
(c) The purposes for
which the monies deposited in the Ballpark Revenue Fund may be used are as
follows:
(1) To directly pay
or to finance the reimbursement of any fund of the General Fund of the
District which has been the source of the payment of, or any loan,
reprogramming or transfer of funds to any District government agency or
instrumentality for the payment of, reasonable and verified
predevelopment and development costs that have been borne by the
District or such District government agency or instrumentality for a
ballpark or any transportation facilities (including parking) adjacent
to or serving a ballpark;
(2) To directly pay
or finance the reimbursement of the District or any District government
agency or instrumentality for any and all reasonable and verified
predevelopment and development costs that were borne by the District or
such District government agency or instrumentality for a ballpark or any
transportation facilities (including parking) adjacent to or serving a
ballpark;
(3) To directly pay
or finance the acquisition of real property, including the costs of
purchasing, leasing, condemning, or otherwise acquiring real property or
an interest in them, including rights-of way or other easements, that
will serve as the site for a ballpark;
(4) To directly pay
or finance the demolition of buildings located on the future site of a
ballpark;
(5) To directly pay
or finance a portion of the cost of the development and construction of
a ballpark and any facilities functionally related and subordinate to a
ballpark;
(6) To directly pay
or finance a portion of the cost of renovating Robert F. Kennedy Stadium
for use as a ballpark until the construction of a new ballpark;
(7) To directly pay
or finance a portion of the cost of any future renovations, improvements
or upgrades to Robert F. Kennedy Stadium or a ballpark after its
construction; and
(8) To directly pay
or finance any other costs of the District government associated with
the development of a ballpark.
Sec. 4. Creation of
the Ballpark TIF Area.
The Tax Increment
Financing Authorization Act of 1998 ("Tax Act"), effective June
24,
13 2000 (D.C. Law I3-128; D.C. Official Code 2-1217.01 et seq.) is hereby
amended by adding the
14 following new section:
"§13.
Ballpark TIF Area.
(a) Notwithstanding
any other provision of this title, there is hereby created a TIF area
denominated the "Ballpark TIF Area", the real property tax
increment revenues and the sales tax increment revenues from which shall
be allocated as provided in this section. The DC Ballpark TIF Area is
defincd as either: (i) the RFK TIF Area until such time as construction
shall have been completed and operations have commenced at a ballpark
constructed after January 1, 2003, that has as its primary purpose the
hosting of professional athletic events, financed in whole or in part by
monies deposited in, or bonds or other evidence of indebtedness, the debt
service upon which is financed in whole or in part by monies deposited in,
the Ballpark Revenue Fund or (ii) after such time the New Ballpark TIF
Area. The RFK TIF Area is described as that geographic area of the
District of Columbia consisting of the areas designated as A, B, C, D or E
on the revised map entitled "Map to Designate Transfer of Stadium and
Lease of Parking Lots to the District," prepared jointly by the
National Park Service (National Capital Region) and the District of
Columbia Department of Public Works for site development and dated October
1986 (NPS Drawing number 831/87284-A) and any other future additions
thereto. The New Ballpark TIF Area is such geographic area of the District
of Columbia as may be designated by resolution of the Council.
(b) Notwithstanding
any other provision of this subchapter, with respect to the RFK TIF Area,
the initial sales tax amount shall mean the available sales tax revenue
from locations within such area for the tax year 2003 and the initial
assessed value shall mean the assessed value of each lot of taxable real
property within such area on January 1, 2003. Notwithstanding any other
provision of this subchapter, with respect to the New Ballpark TIF Area,
the initial sales tax amount shall mean the available sales tax revenue
from locations within such area for the tax year preceding the year in
which the area is designated by resolution of the Council and the initial
assessed value shall mean the assessed value of each lot of taxable real
property on the date the area is designated by resolution of the Council.
(c) Notwithstanding
any other provision of this subchapter, the construction, development, or
renovation of a
publicly financed stadium or arena for use as a ballpark, after January 1,
2003, for professional athletic team events is declared to be an
"eligible project" as defined in § 2-1217.01(18).
(d) Notwithstanding
any other provision of this subchapter,
the real property tax increment revenues and the sales tax increment
revenues from the DC Ballpark TIF Area shall be allocated and paid into the Ballpark Revenue Fund, which is hereby
declared to be a tax increment
allocation account as described in §2-1217.05. The revenues so deposited
in the Ballpark Revenue Fund shall be used for any of the purposes described in
§47-131.01 and any such use is declared to be use for an eligible project as
defined
in §2-1217.01(18).
(e) Without limiting the generality of this subchapter, including
the ability to apply the real property tax increment revenues and the sales tax increment
revenues to the payment of TIF bonds, the monies in the Ballpark Revenue Fund may be used to secure
bonds or other evidence of indebtedness issued in accordance with the provisions of §1-204.90
and §3-1411 et seq., without regard to any limitations contained in this subchapter.
(f) The $300 million limitation on the issuance of TIF bonds contained
in §2-1217.02(b) l shall not apply to any bonds supported in whole or in part by real
property tax increment revenues or sales tax increment revenues allocated to the Ballpark
Revenue Fund.
Sec. 5. Imposition of Ticket Tax.
Title 47 of the District of Columbia Official Code is hereby amended by
adding the following section:
"§47-2002.05. Tax on Certain Tickets of Admission.
(a) The term "professional athletic team" includes, but is
not limited to, any professional baseball, basketball, football, soccer or hockey team.
(b) The term "Ballpark" means (i) a stadium or arena
constructed after January 1, 2003 that has as its primary purpose the hosting of professional athletic
team events and is constructed in whole or in part with monies deposited in, or bonds or other
evidence of indebtedness the debt service upon which is financed in whole or in part by monies deposited
in, the Ballpark Revenue Fund, and (ii) until such time as the hosting of professional athletic
team events for which tickets are sold has commenced at the aforementioned newly-constructed stadium
or arena, the term "Ballpark" shall also include Robert F. Kennedy Stadium,
described as that geographic area of the District of Columbia consisting of the areas designated as A, B, C,
D or E on the revised map entitled "Map to Designate Transfer of Stadium and Lease of Parking
Lots to the District," prepared jointly by the National Park Service (National Capital Region)
and the District of Columbia Department of Public Works for site development and dated
October 1986 (NPS Drawing number 831/87284-A) and any other future additions thereto.
(c) The term "ticket" means any physical, electronic, or other
form of a certificate or token showing that a fare, admission, or license fee for a revocable
right to enter the Ballpark has been paid.
(d) Notwithstanding any other provision of this Chapter relating to the
imposition of sales tax on either a retail sale or a sale at retail, there is hereby imposed a
sates tax of 10% on the gross receipts of any person from the sale of
tickets to any public event referred to in §47-2001(n)(1)(H) sponsored
by such person (or any affiliate of such person) and to be performed at
the Ballpark, regardless of whether any such ticket is sold to a person
who resells the ticket to another person or to a person who uses the
ticket for admission to the athletic event; provided that with respect to
tickets to events at Robert F. Kennedy Stadium, the tax shall apply only
to professional baseball games or exhibitions. The sales tax imposed by
this section shall be in lieu of any sales tax imposed on tickets by
Chapter 20 of Title 47.
(e) The revenues received by the District from the tax imposed by this
section shall be deposited into the Ballpark Revenue Fund."
Sec. 6. Ballpark Fee.
Title 47 of the District of Columbia Official Code is hereby amended by
adding the following new Chapter:
"Chapter 27B. Ballpark Fee.
§47-2754.
Definitions.
For the purposes
of this chapter, the term:
(1) "District gross receipts" means all income derived from any
activity whatsoever from , sources within the District, whether
compensated in the District or not, prior to the deduction of any expense whatsoever connected with the production of such income,
except that beginning with the fee that is required by this title to be paid in fiscal year
2004 and thereafter, the calculation of such income shall not include the collection of federal
or local taxes on motor vehicle fuel.
(2)(A) "Feepayer", except as provided in subparagraph (B) of
this paragraph, means any person, fiduciary, partnership, unincorporated business, association,
corporation or any other entity subject to:
(i) Subchapter
VII of Chapter 18 of this title;
(ii) Subchapter
VIII of Chapter 18 of this title; or
(iii) The provisions of the District of Columbia Unemployment Compensation
Act, approved August 28, 1935 (49 Stat. 946; D.C. Official Code §51-101 et
seq.), except any employer in the employer's capacity as a householder
as distinguished from an employer in the pursuit of a trade, occupation,
profession, enterprise, or vocation.
(B) "Feepayer"
shall not include a child development home, as defined in §4401(3).
§47-2755.
Ballpark Fee.
(a)(1) For the fiscal year beginning October 1, 2003, and each fiscal
year thereafter until and including October 1, 2033, each feepayer shall
remit, on or before June 15 of each year, a fee that shall be based upon the annual District gross
receipts of the feepayer for the feepayer's preceding tax year and computed according to the fee schedule
provided in subsection (b) of this section.
(2) For purposes of this subsection, a feepayer that is exempt from
taxation pursuant to §47-1802.01 shall not be subject to the fee unless, as provided in §
47-1802.01 the feepayer has unrelated business income subject to tax under §511 of the Internal
Revenue Code of 1986. If such feepayer exempt from taxation has unrelated business income, the
feepayer shall remit the fee based upon the feepayer's annual District gross receipts that were
associated with the feepayer's unrelated business income for the feepayer's preceding
fiscal year.
(3) The Mayor shall provide the Council with the following information
associated with the ballpark:
(i) A copy of any term sheet, loan commitment and any other obligation
executed by the District or any District government agency or instrumentality to
finance the District government's costs associated with the development of a ballpark;
(ii) A copy of each contract executed by the District or any District
government agency or instrumentality for goods or services associated with the
development of a ballpark; and
(iii) On or before July 1, 2004, and every 6 months thereafter, a
biannual report which provides an accounting and itemization of all financial obligations and
expenditures of the District government and all revenues generated to the District government,
associated with the development of a ballpark.
(b) The amount of the fee shall be computed according to the following
schedule:
(1) Each feepayer with annual District gross receipts of
$3,000,000 to
$4,000,000 shall pay $1,300;
(2) Each feepayer with annual District gross receipts of $4,000,001 to $8,000,000
shall pay $3,900;
(3) Each feepayer with annual District gross receipts of $8,000,001 to
$12,000,000 shall pay $5,900; and
(4) Each
feepayer with annual District gross receipts of $12,000,001 to $16,000,000 shall pay $9,000; and
(5) Each feepayer with annual District gross receipts greater than
$16,000,000 shall pay $12,900.
(c) The revenues received by the District from the fee imposed by this
section shall be deposited into the Ballpark Revenue Fund.
§47-2756 Enforcement.
Any feepayer who
fails to file a return for or pay the fee due as required by §47-2755 shall be
subject to the same enforcement provisions and administrative provisions
applicable to the fee as provided in Chapter 18 and
Chapter 41 of this title, but the period of limitations upon assessment
and collection shall be determined by §47-4301."
Sec. 7. Fiscal impact
statement.
The Council adopts the fiscal
impact statement in the committee report as the fiscal impact statement
required by §602(c)(3) of the District of Columbia Home Rule Act,
approved December 24, 1973 (87 Stat. 813; D.C. Official Code §1-206(c)(3)).
Sec. 9.
Applicability.
Notwithstanding the
provisions herein, this act shall not take effect unless on or before
October 1, 2003 the Mayor has determined, in writing, that: (a) any
professional sports league locating a team within the District after
January 1, 2003 has approved the location of a professional sports
franchise within the District of Columbia; and (b) there exists an
agreement enforceable by the District or an agency or instrumentality
thereof for such franchise to play all or substantially all of its regular
season home games commencing with the 2004 playing season of such league
at a stadium in the District of Columbia that is wholly or partially
publicly financed.
Sec. 8. Effective
date. This act shall take effect following approval by the Mayor (or in
the event of veto by the Mayor, action by the Council to override the
veto), a 30-day period of Congressional review as provided in § 602(c)(1)
of the District of Columbia Home Rule Act, approved December 24, 1973 (87
Stat 813; D.C. Official Code § 1-246.02(c)(1)), and publication in the
District of Columbia Register. |